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Malaysia Business Licenses

A business in Malaysia cannot legally operate without a Malaysia business license. Now, initially, it might sound like it is going to be a complicated process to apply for a license, but you’ll be pleasantly surprised to find that it is not.

There’s a reason why Malaysia company incorporation continues to remain among the top destinations for starting a business. One of which being that the to register a business in Malaysia is a smooth, straightforward process.

Why Do I Need a Malaysia Business License?

Obtaining a business license in Malaysia is a mandatory requirement. You must comply with this Companies Act requirement. All companies in Malaysia are regulated by the Companies Commission of Malaysia (SSM). 100% foreign ownership of certain business entities, such as the Private Limited Company (Sdn Bhd) entity. A 100% foreign owned company in Malaysia will still require some local Malaysian staff to be employed, such as a Company Secretary for example.

How Long Will It Take to Approve My Business License?

Application times will vary between 1 to 6 months. It would depend on the type of industry license you’re applying for (this includes small businesses and retail stores). The ministry that issues your Malaysia business license will inspect your business premise before they issue you with an approval for your licenses and permits.

Types of Business Licenses Available in Malaysia

Malaysia has two types of business license categories, which are the general license and industry specific license category. General licenses come into effect once you have decided that you want to register a business in Malaysia. Industry-specific licenses on the other hand, are licenses which are unique to certain industries as the name implies.

Businesses, including Sendirian Berhad (Sdn Bhd) companies, Limited Liability Partnership (LLP), Limited Partner business entities will be required to have a business license. If you’re operating an establishment which sells alcohol, you will require a liquor license too.

Your business license options in Malaysia would depend on the industry and the types of business activities you will be involved in. Here’s an overview about the types of available licenses offered by the Malaysian government.

Publication License for Magazines and Books. Broadcasting License for Music, Singing, TV and Radio

ICT

Multi-Super Corridor (MSC) License

Manufacturing

Manufacturing License

If you intend to operate in the retail industry, operate factories or restaurants as a foreigner in Malaysia, you will be required to apply for business licenses from the following Government Departments:

SSM

Local town councils in Malaysia (MPAJ, DBKL)

Fire Brigade Department

You will also need to apply for a Business Premise license. Especially if you own real estate for your business. The requirements of this license will vary, depending on the local authorities and state authorities. where you’re lodging your application. Applications may require additional processing time if the a premise inspection is conducted.

Other Trade Licenses

Foreigners in Malaysia may require other trade licenses to operate their business. The Wholesale, Retail and Trade (WRT) License is among the most common trade license which is required by foreigners.

The WRT license is also applicable to non-resident companies which is 100% foreign owned. If your business is going to be involved in any of the following industries, you will be required to apply for a WRT license:

Retail (franchise, goods and services)

Import

Export

Consultancy activities

Trading

Franchise

A WRT license is renewable every 2-years. There are four options available under this category, which are:

Services and Consultancy

Franchise Business

Restaurant

Retail, Trading (Import and Export), Distributive Trades

Foreigners must obtain a WRT license approval for the categories mentioned above before they can apply for their DP10 work permit with the Immigration Department of Malaysia.

To apply for WRT license, the minimum paid up capital which is needed for the license application is RM1 million. This includes all categories for this license, and your company must be fully set up with a valid tenancy agreement. If yours is a newly incorporated company, you must submit your company’s business plan.

Why Choose Paul Hype Page?

At Paul Hype Page, we offer our clients a unique experience through our comprehensive, all-in-one incorporation packages and services. Our company incorporation and comprehensive after-incorporation services are designed specifically for your business and we cover all your business needs under one roof. For more information about company incorporation in Malaysia, visit our website or contact us today for more information.

Approval of licenses for business incorporation in Malaysia is subjective in nature. It is contingent on the degree of participation of Malaysian residents and nationals in the company at the Directorship, Shareholder or other paid-up capital contributors’ level.

One of the most common trade licenses required by foreigners in Malaysia is the Wholesale, Retail Trade (WRT) License. The license applies to non-resident companies with 100% foreign ownership seeking permission to engage in retail, restaurant, trading, franchise, import, and exporting and consultancy activities.

Other types of business licenses in Malaysia include those issued by the Malaysian Local Town Councils, e.g. the MPAJ, the DKBL and the Fire Brigade Departments. For foreigners looking to set up retail stores and restaurants in Malaysia, such local council licenses are required.

The WRT license approval is required by all the above-mentioned sectors by foreigners before they can apply for their work visa (DP10) for any expatriates (directors or shareholders or employees) in the Immigration Department. The minimum company paid up capital requirement for all categories of WRT license application is RM1 million, with company full set-up with valid tenancy agreement and phone line. For newly set-up company, you maybe able to submit with business plan and investment plan in Malaysia prior setting the office.

We are setting up a mini cafe, our cafe serve tea, coffee, fruit juice, bake bread, bake chicken& fish, spaghetti, bake egg, cake and dessert. We also playing some music from online fm. please advice what type of license we shall apply?

Depending on the place of business, you will need to obtain a license from the local town council to get a operating license and also license to play commercial music. Of course to start you will also need to register a company for a business license. If you are a foreigner, you will have to look at Wholesale Retail Trade WRT business license in Malaysia.

There are four types of WRT licenses, approval is renewable every 2 years and the category eligible to apply for the following businesses to operate in Malaysia:
1. Retail, Trading (Import and Export), Distributive Trades
2. Restaurant
3. Franchise Business
4. Services and Consultancy

Do drop us an email to give us more details in-order for us to assist you with the right solution.

My company is providing security system (Alarm,CCTV,Door Access ect) and smart home system for house,office and factory. May i know what licence i need to apply for? My office at Kuchai Entrepreneurs Park. Which local Authority i need to go for the business licence application?

Restaurants and electronic equipment sales and repair businesses are quite common in Malaysia.

It would be easier to set up such businesses in Malaysia if you have local partners. The companies incorporated to run these businesses must be a joint venture between local and foreign partners.

Setting up a purely foreign company to run these businesses require special licenses and business structures which we will advise you to arrange a consultation session with us. Director work permit will be discussed in the consultation session as well.

Hi there, Thanks for enquiry. Company licenses are important for any business to be conducted in Malaysia. But whether your business/company is required to obtain such license, we need to have a discussion to run things through before we can give you the best suggestion.
Hence we would like to recommend you to set up an appointment with our country manager, Mr Neo (neo@php-cpa.com.sg and +6012-3830252). During the appointment, we will discuss your requirement and propose the best solution for you.

Hi, I am planning to publish a children educational workbook to be given away on purchase of an educational kit. The sale of the educational kit is ok as I have a registered sole proprietorship but I am wondering if I need a publishing licence to give out the workbook (for free) which is solely designed by me.
Thank you

Yes, you would need a publishing permit even though the book alone is not for sale but to be given away together with the educational kit. We would encourage to arrange with our business consultant to understand the details and steps needed to apply for publishing permit. Thank you.

The type of business license require depends on the type of courses and workshops that you are running. As different type of courses/classes might fall under the control of different govt department. Also, if you are running your lessons from a permanent location. Then you need to consider the premise license as well. To fully understand this field, we would suggest for you to disclose more information to us or even schedule an appointment with us in order to discuss further.

my company is a restaurant operate in Malaysia more than 10 years, recently need to apply an Restaurant Manager from Hong Kong, had been informed that the company need a WRT license since 100% owned by foreigner, your company provide service to assist on the WRT application ?

Hi, I am considering to have a 100% foreign company in Malaysia.
Nature of business in repairing and maintenance of air conditioning systems for buildings and factories. Do I need WRT license to operate and apply visa for my directors?
Also what do I need to apply for my foreign directors and how much (cost) and how long?

Yes, a WRT is required for foreign owned companies in Malaysia. As for the foreign director, we need to know which country are they from and the duration of their stay in Malaysia. Only then we will be able advise you accordingly. My colleague will email you with more information, please feel free to drop us an email at neo@paulhypepage.com or paulhypepage@php-cpa.com.sg if you have any further questions.

Thank you for getting in touch. Our Corporate Specialist will be advise you regarding the business setup process in Malaysia and the different types of business license. If you have any further questions, please do not hesitate to contact us at paulhypepage@php-cpa.com.sg

I would like to ask if were to operate a data server factory in Selangor, what license do I need?
And, I believed it will be in the ICT/MSC category, any benefits (eg. tax exemption) that I can obtain from there?

To set up a data centre, you do not need any special license from the authority. However, you need a Private Limited Company (Sdn. Bhd.), premise license for your office and signage license (if there is any signage involved). Our Corporate Specialist has already gotten in touch with you with more details.

Hi, We just registered our company in Malaysia but was temporarily closed for a while. We are looking for someone who could manage it initially such as a Company Director and Secretary. This company is 100% fully owned by a foreigner, a Sdh Bhd. Thus, I’m looking for cost-effective service fees and charges. Can you give me details, please.

Thank you for contacting us. Generally, a Sdn Bhd requires 1 Director minimum. The Director can be individual or corporate but must have at least 1 local Malaysian.

Also, it must be decided if the ownership will be joint venture with Malaysians or 100% foreign owned, as this will affect the paid up capital needed for different purpose of incorporation. Should you require more assistance and advice, please do drop us an email at paulhypepage@php-cpa.com.sg and our Corporate Specialist will get back to you.

Yes all company requires a corporate Secretary to setup and incorporate and also to follow up on the business annual compliance reports.
Do contact us for a full set of incorporation services all under one roof. Email paulhypepage@php-cpa.com.sg
Cheers
Paul

Hi Zoma,
First and foremost, thank you for choosing Paul Hype Page as your preferred corporate service specialist.

Now, please allow me to answer your question.
1. Foreign companies conducting services (which could include events) is required to obtain a WRT licence from the Ministry of Domestic Trade, Cooperatives and Consumerism.

2. However, further licensing might be required, depending on the venue of your events, the type of event that is going to be taking place, the number of pax that is expected, outdoor or indoor, and etc. There will have some other required licensing, depending on the criteria stated.

3. We could perhaps assist you further if you provide us with more details of the event.

Good day
Hai i would like to start gold business with my partner from afirica he is the owner for goods and he would like to bring his goods from afirica and storage in our bank and my part to sell it .i have consultant ssm , what are the other license or procedure i need follow .my partner have his trade license and export license from his country .can you give me any guidelines tq

[…] Business licenses in Malaysia are administered by either government agencies, local authorities or statutory bodies. Again, the issuing authority for the license that you require depends on the type of license that you need. The compliance requirements that you would need to meet before you can obtain these licenses would also depend on the industry, location of your business and the nature of your business activities. […]